1.This Act may be cited as
the Green Transportation Efficiency
Act of 2009
.
2.In this Act:
(1)The
term automobile has the meaning given the term in section 32901(a)
of title 49, United States Code.
(2)
(A)The term category 1 truck means a
non-passenger automobile that has a combined fuel economy value of at least 18
miles per gallon.
(B)The
term category 1 truck does not include a category 2 truck.
(3)The term category 2 truck means a
non-passenger automobile that is a large van or a large pickup, as categorized
by the Secretary using the method used by the Environmental Protection Agency
and described in the report entitled Light-Duty Automotive Technology
and Fuel Economy Trends: 1975 through 2008
.
(4)The term category 3 truck means a work
truck.
(5)Combined fuel
economy valueThe term combined fuel economy value
means—
(A)in the case of a
qualifying vehicle, the number, expressed in miles per gallon, centered below
the term Combined Fuel Economy
on the label required to be
affixed or caused to be affixed on a qualifying vehicle pursuant to part 600 of
title 40, Code of Federal Regulations (or comparable regulations);
(B)in the case of an
eligible trade-in vehicle, the equivalent of the number described in
subparagraph (A) that is posted—
(i)under the term
Estimated New EPA MPG
and above the term Combined
for vehicles of model years 1984 through 2007; or
(ii)under the term
New EPA MPG
and above the term Combined
for
vehicles of model year 2008 or later on the fuel economy website of the
Environmental Protection Agency for the make, model, and year of the vehicle;
or
(C)in the case an
eligible trade-in vehicle manufactured during model years 1978 through 1984,
the equivalent of the number described in subparagraph (A), as determined by
the Secretary (and posted on the website of the National Highway Traffic Safety
Administration) using data maintained by the Environmental Protection Agency
for the make, model, and year of the eligible trade-in vehicle.
(6)The
term dealer means a person licensed by a State who engages in the
sale of new automobiles to ultimate purchasers.
(7)Eligible
trade-in vehicleThe term eligible trade-in vehicle
means an automobile, work truck, or motorcycle that, at the time the
automobile, work truck, or motorcycle is presented for trade-in under this
Act—
(A)is in drivable
condition;
(B)has been
continuously insured consistent with the applicable State law and registered to
the same owner for a period of not less than 1 year immediately prior to the
trade-in;
(C)was manufactured
less than 25 years before the date of the trade-in; and
(D)in the case of an
automobile, has a combined fuel economy value of 18 miles per gallon or
less.
(8)The
term motorcycle means a motor vehicle with motive power having a
seat or saddle for the use of the rider and designed to travel on not more than
3 wheels in contact with the ground.
(9)New
fuel-efficient automobileThe term new fuel-efficient
automobile means a passenger automobile, category 1 truck, category 2
truck, or category 3 truck—
(A)the equitable or
legal title of which has not been transferred to any person other than the
ultimate purchaser;
(B)that carries a
manufacturer’s suggested retail price of $45,000 or less;
(C)that—
(i)in
the case of a passenger automobile, category 1 truck, or category 2 truck, is
certified to applicable standards established under section 86.1811–04 of title
40, Code of Federal Regulations (or a successor regulation); or
(ii)in
the case of a category 3 truck, is certified to the applicable vehicle or
engine standards established under section 86.1816–08, 86.007–11, or 86.008–10
of title 40, Code of Federal Regulations (or successor regulations); and
(D)that has the
combined fuel economy value of—
(i)in
the case of a passenger automobile, 22 miles per gallon;
(ii)in
the case of a category 1 truck, 18 miles per gallon; and
(iii)in the case of
a category 2 truck or a category 3 truck, 15 miles per gallon.
(10)New
fuel-efficient motorcycleThe term new fuel-efficient
motorcycle means a motorcycle—
(A)the equitable or
legal title of which has not been transferred to any person other than the
ultimate purchaser;
(B)that carries a
manufacturer’s suggested retail price of not less than $7,000 and not more than
$20,000; and
(C)that has a
manufacturer’s estimated combined fuel economy of at least 40 miles per
gallon.
(11)The term non-passenger automobile has the
meaning given the term in section 32901(a) of title 49, United States
Code.
(12)The term passenger automobile means a
passenger automobile (as defined in section 32901(a) of title 49, United States
Code) that has a combined fuel economy value of at least 22 miles per
gallon.
(13)The
term Program means the Green Transportation Efficiency Program
established by section 3.
(14)The term qualifying lease means a lease of an
automobile for a period of not less than 5 years.
(15)The term qualifying vehicle means—
(A)a new
fuel-efficient automobile; or
(B)a new
fuel-efficient motorcycle.
(16)The term scrappage value means the amount
received by the dealer for a vehicle on transferring title of the vehicle to
the person responsible for ensuring the dismantling and destroying of the
vehicle.
(17)The
term Secretary means the Secretary of Energy.
(18)The term ultimate purchaser means, in the
case of any qualifying vehicle, the first person who in good faith purchases
the qualifying vehicle for purposes other than resale.
(19)Vehicle
identification numberThe term vehicle identification
number means the 17-character number used by the automobile industry to
identify individual automobiles.
(20)The term work truck has the meaning given the
term in section 32901(a) of title 49, United States Code.
3.Green
Transportation Efficiency Program
(a)There
is established in the Department of Energy a voluntary program to be known as
the Green Transportation Efficiency Program
under which the
Secretary, in accordance with this section and regulations issued under
subsection (h), shall—
(1)authorize the
issuance of an electronic voucher in accordance with subsection (c) to offset
the purchase price, or lease price for a qualifying lease, of a qualifying
vehicle on the surrender of an eligible trade-in vehicle to a dealer
participating in the Program;
(2)certify dealers
for participation in the Program—
(A)to accept
vouchers in accordance with this section as partial payment or down payment for
the purchase or qualifying lease of any qualifying vehicle offered for sale or
lease by the dealer; and
(B)in accordance
with subsection (c)(2), to transfer each eligible trade-in vehicle surrendered
to the dealer to an entity for disposal;
(3)in consultation
with the Secretary of the Treasury, make electronic payments to dealers for
vouchers accepted by the dealers, in accordance with the regulations issued
under subsection (h);
(4)in consultation
with the Secretary of the Treasury, provide for the payment of rebates to
persons who qualify for a rebate under subsection (c)(3); and
(5)in consultation
with the Secretary of the Treasury and the Inspector General of the Department
of Energy, establish and provide for the enforcement of measures to prevent and
penalize fraud under the Program.
(b)Qualifications
for and value of vouchers
(1)A voucher issued under the Program shall have a value
that may be applied to offset the purchase price, or lease price for a
qualifying lease, of a qualifying vehicle in accordance with this
subsection.
(2)New
fuel-efficient automobiles
(A)A voucher may be used to offset the purchase price or lease
price of a new fuel-efficient automobile by $3,500 if the new fuel-efficient
automobile is—
(i)a
passenger automobile and the combined fuel economy value of the passenger
automobile is at least 4 miles per gallon higher than the combined fuel economy
value of the eligible trade-in vehicle;
(ii)a
category 1 truck and the combined fuel economy value of the category 1 truck is
at least 2 miles per gallon higher than the combined fuel economy value of the
eligible trade-in vehicle;
(iii)a
category 2 truck that has a combined fuel economy value of at least 15 miles
per gallon and—
(I)the eligible
trade-in vehicle is a category 2 truck and the combined fuel economy value of
the new fuel-efficient automobile is at least 1 mile per gallon higher than the
combined fuel economy value of the eligible trade-in vehicle; or
(II)the eligible
trade-in vehicle is a category 3 truck of model year 2001 or earlier; or
(iv)a
category 3 truck and the eligible trade-in vehicle is a category 3 truck of
model year of 2001 or earlier and is of similar size or larger than the new
fuel-efficient automobile, as determined in a manner prescribed by the
Secretary.
(B)A voucher may be used to offset the purchase price or lease
price of the new fuel-efficient automobile by $4,500 if the new fuel-efficient
automobile is—
(i)a
passenger automobile and the combined fuel economy value of the passenger
automobile is at least 10 miles per gallon higher than the combined fuel
economy value of the eligible trade-in vehicle;
(ii)a
category 1 truck and the combined fuel economy value of the category 1 truck is
at least 5 miles per gallon higher than the combined fuel economy value of the
eligible trade-in vehicle; or
(iii)a
category 2 truck that has a combined fuel economy value of at least 15 miles
per gallon and the combined fuel economy value of the category 2 truck is 2
miles per gallon higher than the combined fuel economy value of the eligible
trade-in vehicle and the eligible trade-in vehicle is a category 2
truck.
(3)New
fuel-efficient motorcyclesA voucher may be used to offset the
purchase price of the new fuel-efficient motorcycle by $2,500 if—
(A)the new
fuel-efficient motorcycle is street-use approved; and
(B)the
manufacturer’s estimated combined fuel economy is at least 15 miles higher than
the combined fuel economy value of the eligible trade-in vehicle.
(c)
(1)
(A)General period
of eligibilityA voucher issued under the Program shall be used
only for the purchase or qualifying lease of a qualifying vehicle that occurs
during the period—
(i)beginning on
January 1, 2009; and
(ii)ending on the
date that is 3 years after the date on which the regulations issued under
subsection (h) are issued.
(B)Number of
vouchers per person and per trade-in vehicle
(i)Not more than 1 voucher may be issued for a single
person.
(ii)Not more than 1 voucher may be issued for the
joint registered owners of a single eligible trade-in vehicle.
(C)No combination
of vouchersOnly 1 voucher issued under the Program may be
applied toward the purchase or qualifying lease of a qualifying vehicle.
(D)Limitation on
funds for category 3 trucks and motorcyclesNot more than 7.5
percent and 15 percent of the total funds made available for the Program shall
be used for vouchers for the purchase or qualifying lease of category 3 trucks
and motorcycles, respectively.
(E)Combination
with other incentives permittedThe availability or use of a
Federal, State, or local incentive or a State-issued voucher for the purchase
or lease of a qualifying vehicle shall not limit the value or issuance of a
voucher under the Program to any person otherwise eligible to receive the
voucher.
(F)A dealer participating in the Program may not charge a
person purchasing or leasing a qualifying vehicle any additional fees
associated with the use of a voucher under the Program.
(G)The total number and value of vouchers issued under the
Program may not exceed the amounts made available for vouchers under subsection
(i).
(2)Disposition of
eligible trade-in vehicles
(A)Subject to subparagraph (B), for each eligible trade-in
vehicle surrendered to a dealer under the Program, the dealer shall certify to
the Secretary, in such manner as the Secretary shall prescribe by regulation,
that the dealer—
(i)has
not and will not sell, lease, exchange, or otherwise dispose of the eligible
trade-in vehicle for use as an automobile in the United States or in any other
country; and
(ii)will transfer
the eligible trade-in vehicle (including the engine and drive train), in such
manner as the Secretary prescribes, to an entity that will ensure that the
eligible trade-in vehicle—
(I)will be crushed
or shredded within such period and in such manner as the Secretary prescribes;
and
(II)has not been,
and will not be, sold, leased, exchanged, or otherwise disposed of for use as
an automobile in the United States or in any other country.
(B)Nothing in subparagraph (A) prevents a person who
dismantles or disposes of an eligible trade-in vehicle from—
(i)selling any parts
of the disposed eligible trade-in vehicle other than the engine block and drive
train (unless the engine or drive train has been crushed or shredded);
or
(ii)retaining the
proceeds from the sale.
(C)
(i)The Secretary shall coordinate with the Attorney General
and the Secretary of Transportation to ensure that the National Motor Vehicle
Title Information System and other publicly accessible systems are
appropriately updated on a timely basis to reflect the crushing or shredding of
eligible trade-in vehicles under this section and appropriate reclassification
of the titles of the eligible trade-in vehicles.
(ii)The commercial market shall have electronic and commercial
access to the vehicle identification numbers of eligible trade-in vehicles that
have been disposed of on a timely basis.
(3)Eligible
purchases or leases prior to date of enactmentA person who
purchased or leased a qualifying vehicle after January 1, 2009, and before the
date of the enactment of this Act, shall be eligible for a cash rebate
equivalent to the amount described in subsection (b)(2)(A) if the person proves
to the satisfaction of the Secretary that—
(A)(i)the person was the
registered owner of an eligible trade-in vehicle; or
(ii)if the person leased the
qualifying vehicle, the lease was a qualifying lease; and
(B)the eligible
trade-in vehicle has been disposed of in accordance with paragraph
(2)(A).
(d)
(1)It
shall be unlawful for any person to knowingly violate this section (including a
regulation issued pursuant to subsection (h)).
(2)Any
person who commits a violation described in paragraph (1) shall be liable to
the United States Government for a civil penalty of not more than $15,000 for
each violation.
(e)Information to
consumers and dealers
(1)Not later than 60 days after the date of the enactment of
this Act and promptly on the updating of any applicable information, the
Secretary shall make available on an Internet website and through other means
determined by the Secretary information about the Program, including—
(A)how to determine
if a vehicle is an eligible trade-in vehicle;
(B)how to
participate in the Program, including how to determine participating dealers;
and
(C)a comprehensive
list, by make and model, of qualifying vehicles meeting the requirements of the
Program.
(2)Public
awareness campaignOnce information described in paragraph (1) is
available, the Secretary shall conduct a public awareness campaign to inform
consumers about the Program and where to obtain additional information.
(f)
(1)The
Secretary, in coordination with the Secretary of Transportation, shall maintain
a database of the vehicle identification numbers of all qualifying vehicles
purchased or leased and all eligible trade-in vehicles disposed of under the
Program.
(2)Not
later than 60 days after the termination date described in subsection
(c)(1)(A)(ii), the Secretary shall submit to the Committee on Energy and
Commerce of the House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate a report that describes the efficacy
of the Program, including—
(A)a description of
Program results, including—
(i)the
total number and amount of vouchers issued for purchase or lease of qualifying
vehicles by manufacturer (including aggregate information concerning the make,
model, model year, and category of automobile and motorcycle);
(ii)aggregate
information regarding the make, model, model year, and manufacturing location
of eligible trade-in vehicles traded in under the Program; and
(iii)the location of
sale or lease;
(B)an estimate of
the overall increase in fuel efficiency in terms of miles per gallon, total
annual oil savings, and total annual greenhouse gas reductions, as a result of
the Program; and
(C)an estimate of
the overall economic and employment effects of the Program.
(g)Exclusion of
vouchers and rebates from income
(1)For purposes of
all Federal programsA voucher issued under the Program or a cash
rebate issued under subsection (c)(3) shall not be regarded as income and shall
not be regarded as a resource for the month of receipt of the voucher or rebate
and the following 12 months, for purposes of determining the eligibility of the
recipient of the voucher or rebate (or the spouse or other family or household
member of the recipient) for benefits or assistance, or the amount or extent of
benefits or assistance, under any Federal program.
(2)A voucher issued under the Program or a cash rebate
issued under subsection (c)(3) shall not be considered as gross income for
purposes of the Internal Revenue Code of 1986.
(h)Notwithstanding
section 553 of title 5, United States Code, not later than 30 days after the
date of the enactment of this Act, the Secretary shall issue final regulations
to implement the Program, including regulations that—
(1)provide for a
means of certifying dealers for participation in the Program;
(2)establish
procedures for the reimbursement of dealers participating in the Program to be
made through electronic transfer of funds for both the amount of the vouchers
and any reasonable administrative costs incurred by the dealer as soon as
practicable but not later than 10 days after the submission to the Secretary of
a voucher for a qualifying vehicle;
(3)allow the dealer
to use the voucher in addition to any other rebate or discount offered by the
dealer or the manufacturer for a qualifying vehicle and prohibit the dealer
from using the voucher to offset any such other rebate or discount;
(4)require dealers
to disclose to the person trading in an eligible trade-in vehicle the best
estimate of the scrappage value of the vehicle and to permit the dealer to
retain $50 of any amounts paid to the dealer for scrappage of the eligible
trade-in vehicle as payment for any administrative costs to the dealer
associated with participation in the Program;
(5)establish a
process by which persons who qualify for a rebate under subsection (c)(3) may
apply for the rebate;
(6)consistent with
subsection (c)(2), establish requirements and procedures for the disposal of
eligible trade-in vehicles and provide such information as may be necessary to
entities engaged in the disposal to ensure that the eligible trade-in vehicles
are disposed of in accordance with the requirements and procedures,
including—
(A)requirements for
the removal and appropriate disposition of refrigerants, antifreeze, lead
products, mercury switches, and such other toxic or hazardous vehicle
components prior to the crushing or shredding of an eligible trade-in vehicle,
in accordance with procedures established by the Secretary in consultation with
the Administrator of the Environmental Protection Agency, and in accordance
with other applicable Federal and State requirements;
(B)a mechanism for
dealers to certify to the Secretary that each eligible trade-in vehicle will be
transferred to an entity that will ensure that the eligible trade-in vehicle is
disposed of, in accordance with the requirements and procedures, and to submit
the vehicle identification numbers of the vehicles disposed of and the
qualifying vehicle purchased with each voucher; and
(C)a list of
entities to which dealers may transfer eligible trade-in vehicles for
disposal;
(7)consistent with
subsection (c)(2), establish requirements and procedures for the disposal of
eligible trade-in vehicles and provide such information as may be necessary to
entities engaged in the disposal to ensure that the eligible trade-in vehicles
are disposed of in accordance with the requirements and procedures; and
(8)provide for the
enforcement of the penalties described in subsection (d).
(i)From the amounts made available under the
American Recovery and Reinvestment Act of 2009 (Public Law 111–5), the Director
of the Office of Management and Budget may allocate such sums as the Director
determines are necessary to carry out this Act.